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Specialize demanding amend the Banking Act and stress: It has 600 branches and total funds amounted to one billion and 600 million dollars

Author: ASJ, BS Editor: BK, BS 17/04/2015 13:44 Number of Views: 61

Long-Presse / BaghdadStudent specialists and managers of banks, on Friday, amend the Banking Act in making these banks contribute to the President of the Iraqi economy, and stressed that the total capital of Iraqi private banks reached one billion and $ 600 million during 2014, while the government has confirmed that it is currently considering a proposed several projects to strengthen infrastructure for private banks and enable them to meet the challenges facing the country.

He says banking expert Majid Hilfi, in an interview to the (long-Presse), "The reality of banking and non-arrival at the level of ambition deterioration due to the heavy legacy inherited by Iraq and led to the collapse of the economy and the failure of its banking system as a result of war and siege and militarization and implicate government banks internal and external financial relations complex ", is that" it has led to obvious weakness in the banking culture and the decline in international confidence and reverse the role of banks in economic development and the two activities. "

He adds Hilfi, that "the Iraqi banks, governmental and private, began to recover after 2003 due to the presence of new laws and a wide area of ​​the deal," adding, "but that" the political and security crisis cast a shadow over the industry and made his steps slow. "

It consists of the Iraqi banking system of 54 banks, including seven state-owned, one of them an Islamic talk of incorporation, and 23 special commercially, including Islamic nine, are found in Iraq, also 15 branches of foreign banks, and there are many institutions that do some banking business, including 34 money transfer company, and nearly 200 affiliated banks or foreign exchange company to deal with, with the Loan Guarantee Company and the financing of small and medium-sized enterprises, with two of the electronic banking services and smart card, in addition to nearly 800 subsidiary banks and distributed to the provinces of Iraq.

It seems that private banks are the main concern with the owners, because of the lack of adequate space to handle and diversification of activities as well as the loss of confidence in the government and the citizen, making their work is limited to a modest activities.

Says Managing Director of the Bank Union, Aqeel trouble maker, in an interview to the (long-Presse), "the Iraqi private banks did not take the proper horizon because their capital is greater than their deposits," is that "it is a strange case because the opposite is imposed, and this thing has been imposed upon because of market management, and the laws prevailing so far. "

The little trouble maker, that "private banks are still experiencing a recession and should government agencies orientation her attention to it a real partner in the development of the economy and maintain the country's fiscal and monetary policy", and finds that "it is through the launch of government deposits her and her husband in the medium and large investment projects to participate in the rebuilding of Iraq. "

Chalabi: private banks knot lies banks Law

But a member of the governing body in the Association of private banks, Adnan al-Chalabi, seems optimistic because of what we have reached the private banks' capital and expand its network in Iraq, despite his claim to amend the Banking Act, which is a node without turning them own evolution.

Chalabi says in an interview to the (long-Presse), "The Iraqi private banks total capital increased from $ 30 million in 2004 to one billion and $ 600 million last year-end 2014, except for branches owned by Arab and foreign banks operating in Iraq."

Chalabi and adds that "the number of private banks operating in Iraq rose from 17 in 2004 to 31 year-end 2014 the past, while the number of branches in Baghdad and other provinces of 100 increased to more than 600 to compete in the number and level of services Rafidain bank branches and good government."

Explains Chalabi, that "private banks before the government counterpart in the level of services and the use of modern technologies, and has linked its subsidiaries public departments with modern communications to increase the speed of completion of transactions on the one hand and strengthen oversight and supervision on the other hand, also issued many of them international credit cards visa card or Master Card and others, some of them setting up equipment for cash at airports and tourist complexes, commercial and major hotels. "

He continues, a member of the governing body in the Association of private banks, that "Islamic banking has evolved in Iraq, as their number increased from one established in 1993, to eight," and goes on to "a law regulating its forthcoming towards investment operations and Murabaha according to Islamic law."

The voyager Chalabi, that "private banks knot lies in the Banking Act, which is still under discussion to amend it," is that "the survival of the law without modification cause major problems for private banks because it prevented the simplest rights in transactions such as investing and accept government deposits to move the work and the economy of the country." .

Advisor: The government is considering several projects to support banksIn turn, says the Council of Ministers for Economic Affairs Adviser, Abdul Hussein Al-Anbuge, said in an interview to the (long-Presse), "The Iraqi government can not ignore the role of private banks in the economy and stimulate investment and growth," and shows that "the government is currently considering more than one project to support private banks. "

He adds Anbuge, that of those "projects bill to save the financial deposits, and the recommendation to develop a financial government deposits with the private banks," is that it "contributes to the strengthening of infrastructure for private banks and enable them to cope with the financial and economic challenges facing the country."

The Central Bank of Iraq, revealed in (March 19, 2015) about the existence of a number of private banks lagging in its work during the last term, and in attributing the cause of the delay to the non-payment of dues contractors and clients as a result of "lack of liquidity", vowed to dealers funds with lagging private banks through "legal reserve".

See specialize to the Banking Act of 2004 is a "node" that turns without offering private banks, because of restricted freedom and control the state by the campus to develop their capabilities, and seeking to subjugate the central financial institutions to political influence, and try to touch their independence, is the other led to the rigidity of the Iraqi banking sector, and not to the country for any international classification by the competent institutions and, therefore, not able to any of the banks, government or private, to obtain an international rating, the weaker their role in foreign relations.